Almost 55% of foreign-invested enterprises in Vietnam posted losses totaling VND131.4 trillion (US$5.7 billion) in 2019, according to information released by the country's Ministry of Finance.
The data is based on the 2019 financial statements of 22,600 companies set up by foreign investors in Vietnam, with a total of 12,500 companies posting losses.
According to the ministry, the industries that have seen an increase in the number of FDI enterprises suffering losses before and after tax for two consecutive years are: steel and other metals; oil, gas and petrochemicals; and telecommunications and software.
Industries with high profit margins for FDI companies include automobile, motorcycle and other motor vehicle manufacturing and assembly with a 44.2% profit margin; processed food, wine, beer and beverages with a 29.1% profit margin; business support services with a 35.9% profit margin; and motor vehicle maintenance, medical, education and training, and science and technology with a 25.6% profit margin.
According to the ranking of countries and regions, FDI companies from Europe (Denmark, Netherlands, France and Luxembourg) have the highest total profit. Countries such as South Korea, Japan, Singapore, Taiwan and the British Virgin Islands have the highest registered capital in Vietnam.
